Thoughts on Delaying Claiming Civil Service Classic Pension

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81963609#Comment_81963609

And a reduction, which isn't a "penalty", if you do take it before the normal pension age.

hugheskevi

https://forums.moneysavingexpert.com/discussion/comment/81963609#Comment_81963609

Alpha is actuarially enhanced if you commence it after Normal Pension age. This is also set to be actuarially fair, as with actuarial reductions.

People have an irrational attachment to Normal Pension age with alpha, perhaps stemming from the Normal Pension age 60 schemes (classic, classic plus, premium) where not taking benefits at Normal Pension age could be very detrimental. Or maybe as benefits as at Normal Pension age are shown on Annual Benefit Statements, loss aversion kicks in when considering taking benefits before that age.

george_jetson

Taking Alpha at 60 means you get 0.7 of the amount that would be paid at 67 I think.

I worked out that the "breakeven" point for me (taking the Alpha portion of my pension at 67 vs 60) was in my early 80s - it would take that long for the 67 option to be financially optimal.

There are lots of factors to consider but on the whole I think I would prefer to take Alpha early - I'm sure I'll be able to put the money to better use in my early 60s than 80s (when of course I'll also receive a state pension)